The companies that can provide the most economic value from the power their AI uses will ultimately command the highest valuations, Perplexity CEO Aravind Srinivas told CNBC on Wednesday. Srinivas said that whichever company can provide the “most taken value per watt per user” will be the winner in the future. “Whoever is able to maximize this particular objective really will, by balancing accurac...
The companies that can provide the most economic value from the power their AI uses will ultimately command the highest valuations, Perplexity CEO Aravind Srinivas told CNBC on Wednesday. Srinivas said that whichever company can provide the “most taken value per watt per user” will be the winner in the future. “Whoever is able to maximize this particular objective really will, by balancing accuracy, latency, cost, privacy and intelligence all together, they’re going to win, that’s what’s going to win long term,” Srinivas told CNBC in an interview on Wednesday. Perplexity AI, a San Francisco-based startup, is backed by Nvidia ( NVDA ), SoftBank ( SFTBY ), and Jeff Bezos. A token refers to the basic unit of data that an AI model can process. When an AI chatbot is asked to carry out a task, it breaks it down into tokens. Each token then requires energy to be processed. Srinivas’ view is that whichever company can provide the best ratio of energy to economic output will be in the strongest position. “And so it might feel like some model providers are making a lot of money because their models are very expensive ... but that’s short-term revenue growth,” Srinivas said. Artificial Intelligence/Robotics ETFs: ( AIQ ), ( BOTZ ), ( DTEC ), ( WTAI ), ( XAIX ), ( WISE ), ( GINN ), ( ROBT ), ( TECB ), ( XT ), ( THNQ ), and ( CHAT ). More on markets, Global PMI Shows Factory Growth Spurt Amid Boost From Price And Supply Worries Electrolux Professional AB (publ) (ECTXF) Presents at Svenska Handelsbanken Nordic Small & Mid Cap Seminar - Slideshow Rhythm Pharmaceuticals: The Rare Obesity Platform Is Becoming A Commercial Engine Highwood Asset Management announces sale of Wilson Creek assets to Obsidian Energy for up to $112M Palo Alto Networks projects $3.345B-$3.355B Q4 revenue while targeting 40% free cash flow margin in fiscal 2028
undefined/iStock via Getty Images Investment Thesis Note: This is an update to my previous article . Innovative Aerosystems ( ISSC ) has largely completed the integration of the Honeywell assets, and now margins have recovered, free cash flow has improved a lot, and backlog has resumed growth. More importantly, management is now using the better financial position to be active in M&A, transforming...
undefined/iStock via Getty Images Investment Thesis Note: This is an update to my previous article . Innovative Aerosystems ( ISSC ) has largely completed the integration of the Honeywell assets, and now margins have recovered, free cash flow has improved a lot, and backlog has resumed growth. More importantly, management is now using the better financial position to be active in M&A, transforming ISSC from a niche avionics supplier into a potential consolidator within the aerospace niche. While management's revenue target of $250 million by 2029 is ambitious, I believe the market is underestimating the potential earnings growth even if the goal is not reached, leading me to assign a Buy rating again. What Has Changed So Far? This isn't the first time I've written about Innovative Aerosystems (formerly Innovative Solutions & Support), and when I last covered it in August 2025, the question was if management could successfully integrate the Honeywell assets while protecting margins, given that it was a very large acquisition with high costs due to the debt issued and the integration itself. In the recent results, this question has been answered for me. While the gross margin fell from 55% in 2024 to 48% at the close of 2025 (because of the acquisition), it had already returned to 54% by Q1 2026, and in the most recent Q2 2026, it remained above 50%. However, the company has very marked seasonality between quarters, as can be seen in the image below, so I prefer to analyze the results by periods to try to reduce this effect. Data by YCharts In the first half of fiscal year 2026, sales grew 16.5%, but what I was interested in knowing (the margins) also showed incredible strength, as operating profit grew 34.9% and free cash flow nearly 6-fold. Also, by the end of Q1 2026, it was clear that the acquisition of Honeywell's assets was fully digested, as cash on the balance sheet increased from $2.7 million to just over $8 million, and total debt remained stable. This had a...
Sohel_Parvez_Haque Highwood Asset Management ( HAM:CA ) announced it has entered into a definitive asset purchase and sale agreement to divest its Wilson Creek assets to Obsidian Energy ( OBE ) for total consideration of up to $112 million. Under the terms of the agreement, Highwood will receive an upfront cash consideration of $105 million upon closing, subject to typical closing adjustments. T h...
Sohel_Parvez_Haque Highwood Asset Management ( HAM:CA ) announced it has entered into a definitive asset purchase and sale agreement to divest its Wilson Creek assets to Obsidian Energy ( OBE ) for total consideration of up to $112 million. Under the terms of the agreement, Highwood will receive an upfront cash consideration of $105 million upon closing, subject to typical closing adjustments. T he transaction also includes potential contingent consideration of up to $7 million, payable in quarterly installments between the third quarter of 2026 and the second quarter of 2027. The divestiture represents a massive value creation milestone for the company, crystallizing a pre-tax return on invested capital (ROIC) of over 200%. Highwood originally acquired the Wilson Creek assets in August 2023 for a net consideration of approximately $35 million. S ince the acquisition, the properties have generated approximately $26 million in asset-level free cash flow through March 31, 2026. Management plans to utilize the upfront cash proceeds to pay down outstanding liabilities. Following the close of the transaction, Highwood anticipates its net debt will be reduced to approximately $15.0 million. Th e deal carries an effective date of April 1, 2026, and is projected to close on or about June 30, 2026. The overhauled, low-leverage balance sheet is expected to unlock substantial financial flexibility. Highwood intends to redirect capital to accelerate development in its core Brazeau asset area, advance its early-stage portfolio opportunities, and pursue strategic acquisitions. Furthermore, to enhance total returns to shareholders, the company plans to implement its inaugural Normal Course Issuer Bid (NCIB) share buyback program in the second half of 2026, pending standard board and exchange approvals. More on Highwood Asset Management, Obsidian Energy Ltd. Obsidian Energy: Under-The-Radar Oil Play Offering Large Upside Historical earnings data for Highwood Asset Management Financ...
Nippon Paint Holdings Co. and Sherwin-Williams Co. ended their effort to buy Akzo Nobel NV , leaving the Dutch paintmaker to proceed with its planned merger with US firm Axalta Coating Systems Ltd. The decision follows AkzoNobel’s rejection of two joint all-cash offers put forward by the firms, the companies said in a statement Wednesday. The most recent offer of €73 per share valued the maker of ...
Nippon Paint Holdings Co. and Sherwin-Williams Co. ended their effort to buy Akzo Nobel NV , leaving the Dutch paintmaker to proceed with its planned merger with US firm Axalta Coating Systems Ltd. The decision follows AkzoNobel’s rejection of two joint all-cash offers put forward by the firms, the companies said in a statement Wednesday. The most recent offer of €73 per share valued the maker of Dulux paints at €12.5 billion ($14.5 billion), and involved plans to break up the business. Akzo Nobel shares plunged as much as 22% in Amsterdam, erasing gains made after the company last week revealed the rejected offers. Akzo Nobel cited the difficulty of getting regulator approval for the Nippon proposal, and the board said the firm’s agreement to merge with Axalta, announced in November, was superior. The Axalta deal will create a paintmaker with an estimated enterprise value of about $25 billion. Under the terms of the offer, Akzo Nobel would own 55% of the combined entity and move its the share listing to New York, after trading for some three decades in Amsterdam.
The Organisation for Economic Cooperation and Development has slashed its global growth outlook, warning that the economic damage from the U.S.-Iran war could dramatically worsen unless a durable peace settlement is reached quickly. In its June Economic Outlook, the OECD said global growth is now expected to slow from 3.4% in 2025 to 2.8% in 2026, before recovering to 3.1% in 2027 — should the cur...
The Organisation for Economic Cooperation and Development has slashed its global growth outlook, warning that the economic damage from the U.S.-Iran war could dramatically worsen unless a durable peace settlement is reached quickly. In its June Economic Outlook, the OECD said global growth is now expected to slow from 3.4% in 2025 to 2.8% in 2026, before recovering to 3.1% in 2027 — should the current energy price shock start easing by the middle of this year. But that's assuming a time-limited disruption scenario in which a peace agreement is reached and current disruptions to the Strait of Hormuz are swiftly resolved, said Stefano Scarpetta, the OECD's chief economist. A worse scenario, in which the disruptions to shipping and energy infrastructure continue well into 2027, would see global growth fall sharply to just 2.1% in 2026, and 1.8% in 2027. That would tip some economies into, or close to, recession, Scarpetta warned. The OECD's study explores how the Strait of Hormuz shutdown, coupled with energy infrastructure damage throughout the Gulf, has sent energy prices soaring, and pushed up the costs of fertilizers and other key industrial inputs. It noted how the consequences of the war between the U.S. and its allies and Iran are likely to be felt for some time, even after any resolution is found. Scarpetta said that a durable settlement to the current conflict would not only bring relief to the region but also "lay the groundwork for a resolution to the disruptions it has caused to the global economy." "The longer the disruptions last, the larger the economic and social costs become," he said in the report. In the worse-case scenario, global inflation is expected to rise by 0.4 percentage points in 2026, and 1.3 percentage points in 2027. "Unemployment would rise and investment — including in energy-intensive AI — would weaken significantly, with increasing risks of financial market repricing… with upside pressures from elevated commodity prices partially offs...
When Berkshire Hathaway 's (NYSE: BRKA) (NYSE: BRKB) 13F filing was released in May, it provided insight into the company's direction following the retirement of its longtime leader, Warren Buffett, at the end of last year. When Berkshire's stock positions were released, a handful of moves came as a surprise. The company completely exited positions in Visa , Mastercard , UnitedHealth Group , and A...
When Berkshire Hathaway 's (NYSE: BRKA) (NYSE: BRKB) 13F filing was released in May, it provided insight into the company's direction following the retirement of its longtime leader, Warren Buffett, at the end of last year. When Berkshire's stock positions were released, a handful of moves came as a surprise. The company completely exited positions in Visa , Mastercard , UnitedHealth Group , and Amazon , but the real head-scratcher was the stocks Berkshire chose to add. Berkshire added over 39.8 million shares of Delta Air Lines (NYSE: DAL) , worth over $3.28 billion (about 1% of its stock portfolio), a move that surprised many. Let's take a look at why. Continue reading
Maks_Lab/iStock via Getty Images PMI survey data indicate that global factory production growth accelerated to a near five-year high in May, with the war in the Middle East having induced a surge in demand for manufactured goods and inputs. However, this growth spurt is being fuelled by precautionary stock building, as companies seek to safeguard against supply shortages and prices hikes linked to...
Maks_Lab/iStock via Getty Images PMI survey data indicate that global factory production growth accelerated to a near five-year high in May, with the war in the Middle East having induced a surge in demand for manufactured goods and inputs. However, this growth spurt is being fuelled by precautionary stock building, as companies seek to safeguard against supply shortages and prices hikes linked to the conflict. The forward purchasing by definition points to weaker growth of purchasing and production in the coming months. Supply shortages, which have been more widely reported than at any time since 2022 in recent months, have already been reported as constraining output to a degree not witnessed since 2022. These constraints threaten to not only subdue growth but could also sustain further price pressures. Factory production growth at its fastest for nearly five years The Global Manufacturing Purchasing Managers’ Index (PMI) survey, sponsored by J.P. Morgan and compiled by S&P Global Market Intelligence, recorded the sharpest rise in worldwide factory production since July 2021 in May. The latest rise built on a similarly strong increase in April. US output growth hit the highest for just over four years in May, and the past two months have seen among the largest gains in production in Japan since the start of 2018. The solid expansion in mainland China was among the strongest for two years. The upturn in the eurozone was meanwhile modest. Albeit in both cases, rates of growth lost a little momentum in May. The rest of Asia saw sustained strong output growth in May. Stock building boosts growth While the data point to encouraging resilience of the manufacturing economy as the war in the Middle East extended into its third month in May, growth in many cases has been buoyed by precautionary stock building as companies seek to buy goods ahead of supply shortages or price rises linked to the war. Analysis of comments provided by surveyed companies, explaining changes in ...
《非标玩家UnDefined》编者按✍️ 这期来自20VC with Harry Stebbings的播客，逼迫大家面对AI商业化的现实。 做Claude的Anthropic，在半年内月收入增长N倍，曲线直接变成直线： 在今年1月的年化收入还是90亿美元；2月变成140亿，3月190亿，4月300亿，而到了5月，这个数字已经逼近450亿美元。 这里说的是按当月收入速度推算全年。即便如此，这样的增速...